What is a Personal Assistant Agreement?
A personal assistant agreement (also known as a House Employment Contract) is a written contract between you and an employee, or workers if you employ more than one person (assistant). The contract should define the employment relationship between you and your personal assistant. It should also set down things such as the personalised duties and obligations, hours of work, days of work and pay so that everyone knows what is required of them.
You may have discussed their working conditions at the interview stage and agreed on what their duties would be, but the contract formalises everything in writing, making it binding on both parties. In this way, the employer and the personal assistant have clear expectations of the role, making it harder for them to get into conflict in the future.
From the perspective of the PA, a written contract offers them protection if you make a bad or unfair decision later down the line – for instance , if the personal assistant has been doing work not specified in the contract and you refuse to pay for that additional time they have worked. In the same way, the employer has a written record of any agreed arrangements which will be helpful if ambiguity arises later on in the working relationship.
For example, it’s common for employers to insist that their PAs are ‘on call’ while also specifying that their work is claimed as casual or a ‘zero hour’ contract. However, the Employment Rights Act 1996 provides that a contract of service exists where an employee agrees to an obligation to provide work and an obligation to do that work. So, for example, as far as the law is concerned, an expectation that a PA will be ‘on-call’ should be seen as a ‘contract of service’ with an obligation on their part to provide work even when they haven’t been expressly asked to do so.
Key Elements of a Personal Assistant Agreement
A personal assistant agreement typically includes the following components:
job description, including specific duties, time requirement, location, and details about performance;
any requirements for a license or special skills;
work hours and location;
all forms of compensation;
benefits, including in cash;
vacation and sick times;
clear statement of confidentiality;
prohibition of unauthorized disclosure of confidential information;
the permitted scope of sharing confidential information with other parties;
definition of confidential information subject to the agreement;
retention of intellectual property created during employment;
prohibition on solicitation of employees and clients of the employer;
provision for reimbursement for job-related expenses;
return of all confidential information in any form;
billable activities;
reasons for immediate termination;
probation periods;
dispute resolution procedures;
non-compete terms;
grooming and appearance standards; and
other tests.
Legal Considerations for Agreement Drafting
When drafting personal assistant agreements, understanding the legal considerations at play in your particular jurisdiction is paramount. This can include knowledge of local labor laws, privacy regulations, or tax compliance standards. Whether employees or independent contractors, the individual personal assistants should be able to satisfy the legal requirements for their role. If you want your personal assistant to work as an independent contractor instead of an employee, you would want to ensure that the agreement prohibits them from acting like or misrepresenting themselves as an employee of yours or your company. While employees and personal assistants are entitled to certain federal and state-level rights, independent contractors are not. Personal assistants working as independent contractors, for example, are not entitled to the same security and protections that employees have—such as minimum wage—and they would need to abide by different income and working hour tax obligations. A personal assistant who is an employee, on the other hand, would be subject to overtime requirements, which vary by state, and minimum wage laws. For example, California sets the minimum wage for non-exempt employees at $15.50 per hour for employers with 26 or more employees, and $15.00 per hour for employers with 25 or fewer employees.
On the other hand, under California law, independent contractors are generally excluded from most labor law requirements. The California labor code, however, provides ample protection for employees yet limited protection for independent contractors. In California, for full legal treatment on the difference between a contractor and an employee, the "ABC Test" is the prevailing method, which states that the following must be satisfied to classify someone as a contractor:
a. The person is free from control and direction of the hiring entity in the course of the work;
b. The work is performed outside of the current hiring entity’s business or the usual course of operations for that business; and
c. The person is customarily engaged in an independently established trade, occupation, or business of the same nature as the work being performed.
Other jurisdictions have similarly strict standards for distinguishing between an employee and an independent contractor. The specific requirements may differ, so it is highly recommended you look into the applicable laws where your personal assistant resides. The Internal Revenue Service has a strict set of criteria and standards for determining the proper classification an employee or independent contractor.
When it comes to privacy and confidentiality obligations, the two parties (employer/hirer and assistant) should be cognizant of the data that may be lawfully collected and how that data will be safeguarded. The personal assistant will likely be privy to confidential and/or sensitive information or have access to valuable corporate property requiring protection. Reciprocally, the personal assistant must be aware that the employer or hirer may monitor some of the work, and information disclosed to the assistant from third parties might be protected by a privacy right and should not be shared.
Finally, employers or hirers of personal assistants should also consider workplace safety and injury prevention policies that contain clear reporting mechanisms for injuries and accidents. Handbooks are a popular tool for employment enforcement among employers, which are often legally and contractually binding to the point they should meet statutory standards.
Common Pitfalls to Avoid
Common mistakes to avoid when creating Personal Assistant Agreements
One of the most common mistakes I see is when an independent contractor is a member of the family. In those relationships, the employer has very good control over the employee in that they can dictate the hours, where they sleep, and what they do in their off time. I’ve even had a case where the individual got their agreement from a family member who agreed to pay the independent contractor rate "as long as you keep my dog in check." To protect yourself from some of the more obscure cases like this, it is always advisable to have clear and enforceable policies in the agreement for notice required for termination, pay and overtime, covering when and what time the employee should stop working, etc.
Another pitfall I see is including too much or too little into the written agreement. It is a great idea to specifically enumerate the services to be performed, especially if you will not be supervised all the time. For example, do not include "household chores" but instead specifically say "taking out the trash on Wednesdays and mopping once a week on Thursdays." This provides greater clarity for the employer and makes resignation less painful for the employee if he/she gets fired because the employer is unhappy that they didn’t mop in the past month. Conversely, if you include too many specifics, it may limit the kinds of work the personal assistant can do. Remember, it is a job for the sake of the employer to have someone there at all times. If you say "the personal assistant will perform all tasks except for bathing and showering" that will be interpreted very specifically – bathing means no showers. And unless you specifically re-included a provision which could be implied by the first provision into the second provision, it wouldn’t necessarily mean the personal assistant could help with the showers. This would be rectified in the intensive drafting phase with the input of your attorney. But going in armed with that knowledge will help you along the way.
Additionally, standardizing your agreement will help if it is tied to the duties, instead of the client. This helps if there are aides that have not yet been approved by DHS or are employed by a private duty agency. A standardized agreement will allow you to put a personal assistant under contract without having to re-do the contract from the start if DHS stops approving their time cards or the agency changes client employees.
Tailoring Agreements for Specific Requirements
An important aspect of personal assistant agreements is the ability to customize them for the different needs of individuals who occupy the role of a Personal Assistant. High-net-worth individuals have unique needs, as do the corporate executives who are entitled to full-time at-will personal assistants. In addition, unique employment situations create a special need for customization. For example, a young professional (a business executive, doctor or lawyer) may desire a personal assistant for a specific short term, e.g., for only the length of time the professional expects to remain in her current position. That attorney may be working in a small law firm, and she wants to ensure her ability to free herself of her personal assistant obligations if she leaves the law firm while developing her own practice.
Another example: an author working on a book has a need for a full-time personal assistant during the period he is writing that book . When the book is completed, so is the personal assistant’s job, unless the author hires her for another project. That is another situation where the Personal Assistant Agreement may terminate automatically after one year from the date of hire.
It is important to note, however, that courts have held that where there is not an express provision in the employment agreement describing the duration of the employment, there is an implied promise that the employment is for an indefinite period, terminable at any time by either the employer or the employee upon notice. However, these cases were decided in the context of terminating an at-will employee. Where there is a specific agreement that the employment is for a limited time, and that the employment will end at the conclusion of the project, there will be no legal employment claims by the personal assistant if he or she is terminated upon the completion of the project.
Agreement Practices for a Professional Management Dynamic
Maintaining a professional and productive working relationship between an employer and a personal assistant (PA) is crucial for the success of both parties. A detailed and clear agreement forms the foundation for such a relationship, but it takes ongoing attention and effort from both parties to ensure a positive working dynamic.
Communication is key to avoiding misunderstandings and conflicts. Both the employer and the PA should be encouraged to maintain an open dialogue about job expectations, progress, and concerns. This may involve regular check-ins or updates, as well as an open-door policy to address any issues as they arise. When problems do occur, resolution should be addressed promptly and professionally, with an emphasis on finding a solution that satisfies both parties.
Clear boundaries also play an important role in maintaining a professional relationship. The agreement should outline the PA’s specific duties and responsibilities, as well as any limitations on the scope of work. For example, the employer should clarify if personal and household errands are expected items on the PA’s expenses report and reimbursement process, or if he or she is limited to strictly business-related tasks. Additionally, the PA should respect the employer’s privacy and work boundaries, such as not sharing confidential information obtained in the course of employment. By establishing clear limits on the working relationship, the employer and the PA can avoid common pitfalls associated with crossing personal and professional lines.
Lastly, the employer – personal assistant relationship, like any employer – employee relationship, will benefit from appropriate classification. Ensuring that the PA is properly classified as an independent contractor or employee, and paying him or her in accordance with the law, is critical to avoiding state and federal government enforcement actions, lawsuit claims, or even unnecessary tax payments. A payroll tax or wage and hour lawyer can help you properly determine the classification of the PA and avoid any potential issues.
With the guidelines set out in a well-drafted agreement, the employer and PA can work together, while also maintaining their own separate domains. Overall, a positive working relationship between an employer and PA depends on knowing the parameters of their working relationship, and maintaining an open and communicative dialogue on an ongoing basis.
When Should You Modify Your Agreement and How?
In an ever-changing business landscape, the roles and responsibilities of personal assistants can evolve alongside company growth or changes in management structure. It is crucial for both employers and employees holding such positions to keep the agreement governing their professional relationship up-to-date. This section outlines common scenarios that may prompt the need for a revision to the personal assistant agreement, as well as detailed guidance on how to implement these changes in a thoughtful and effective manner.
Common Scenarios for Revision:
- Changes in Job Responsibilities: If an employer wishes to expand a personal assistant’s duties or if an employee holding the position has taken on new tasks beyond the scope of their former role, this may indicate the need to update the agreement. It is essential to formally document any additional responsibilities to ensure clarity and avoid any confusion in the future.
- Changes in Compensation: As businesses grow and their success expands, it is not uncommon for employers to revisit and adjust an employee’s compensation package. Any increase in salary or bonuses should be reflected in the personal assistant agreement, with detailed notes of how and when these compensation changes will be implemented.
- Changes in Management Structure: A shifting corporate landscape may either remove or replace the original employer. In such cases , it is vital to address these changes with clear communication regarding who will now oversee the agreement and any revised roles pertinent to the personal assistant’s position.
- Changes in Outside Employment: The agreement also specifies any outside employment opportunities. If there are updates to the terms under which a personal assistant may partake in outside work or earnings from such activities, it should be noted as well.
Effective Methods for Revision:
The employer, employee, and any other pertinent parties (such as legal counsel or HR professionals) may agree to amend the existing agreement or enter into a new one as needed. The following steps are recommended to effectuate these changes:
Step One: Familiarize yourself with the original agreement for guidance on terms that must be upheld.
Step Two: Document record of the changes and schedule a meeting with all signatories to discuss any issues.
Step Three: Create a supplemental document that modifies the existing contract or draft a new one.
Step Four: Collect feedback, and move forward with signatories setting timeframes and discussing the next steps.
Step Five: Once all parties have reviewed the documents, arrange for signatures that can be attested by a third party, if necessary.
Step Six: Document the process by creating multiple copies of the agreement and filing away evidence of amendments and signatures for recordkeeping.
In the world of personal assisting, agreements are not static. Regular examination and update of existing contracts can ensure that the rights and responsibilities of all parties remain adequately covered as changes occur.